Abacus Online May 2002
MAKING THE BEST OF A BAD JOB
When the inevitable happens, and you receive notice that there is to be a meeting of creditors of one of your customers, it may not necessarily be bad news, according to David Butler, Business Recovery Partner.
The first thing to do is to call our business recovery department FREE on 0800 5870918 for some initial advice on the best course of action. Time may well be of the essence, so don't delay! Depending on the venue of the meeting and the amount you are owed, we will either provide you with a report from the insolvency practitioner involved, or actually attend the meeting on your behalf.
All notices to creditors will refer to a specific section of the Insolvency Act 1986:
Section 3 - a meeting to consider proposals for a Company Voluntary Arrangement ('CVA'). Tactical voting by creditors can make a real difference to the prospects of being paid. The company will not generally be ceasing to trade and may therefore look to be supplied on credit again once the CVA has been approved.
Section 23 - a meeting where the Administrators report to creditors on their actions since appointment and their plans for the future.
Section 48 - a meeting where the receivers report to creditors on their actions since appointment and their plans for the future.
Section 98 - a meeting where creditors have the opportunity of appointing the liquidator of their choice, rather than of the directors' choice.
Section 136 - a meeting convened by The Official Receiver so as to appoint a liquidator from the private sector to realise the company's assets and pay a dividend to creditors.
Section 257 - very similar to section 3 above but the meeting is to consider proposals for an Individual Voluntary Arrangement.
Section 293 - very similar to section 136 but the appointment is of a trustee to realise a bankrupt's assets.
The best advice is of course "don't let it happen to you!" Use trade and bank references before granting credit. Give sensible credit limits and stick to them. Make sure you use well-drafted terms & conditions and get the customer to sign them before you first supply. A good retention of title clause will allow you in most cases, to repossess goods you have supplied and not been paid for. Finally, don't be afraid to refuse further supplies - a customer that doesn't pay is worse than no customer at all!
The Times They are a Changing!
Everyone at Nunn Hayward would like to congratulate Her Majesty Queen Elizabeth II on the Jubilee Anniversary of her Accession.
Nunn Hayward has been based in Station Road, Gerrards Cross for the last 16 years. In that time we have grown into an 8 partner practice with 35 staff and 4 offices.
Looking back over the past 50 years - how times have changed!
In 1952 Income Tax was 15% for first £50, 27.5% on £50-£250 and over £250 it was 47.5%, when average earnings were £7.11s.11d per week! A pint of milk cost 5d and a loaf of bread was 5d.
In new money that's roughly £7.59 per week and 2p for the milk and bread.
In 2002 Income Tax is 10% for the first £1,920, 22% on £27,980 - £29,900 and over £29,900 it is 40%. Average earnings are now £356 per week, a pint of milk costs 33p and a loaf of bread 66p.
Remember that VAT was not introduced until 1971 and for those of you who do not remember the 'old money' it was 240 pennies = £1 and 12 pennies = 1 shilling.
At this time when families will be reflecting over the huge changes in the last 50 years we at Nunn Hayward realise the issues that have arisen and how complex it has become in that time. For an informal discussion on how we can help your family call David Duke, Ian Nunn or Simon Dodd.
Please contact us to discuss the above further
Tel: 01753 888211 Fax: 01753 889669 Email: abacus@nunn-hayward.com
Nunn Hayward, Sterling House, 20 Station Road, Gerrards Cross, Bucks SL9 8EL. |
Registered Auditors, Licensed Insolvency Practitioners and authorised to carry on investment business by the Institute of Chartered Accountants in England and Wales. This publication has been prepared as a guide only to topics of current financial and business interest. No responsibility for loss occasioned to any person acting or refraining from acting as a result of any material in this publication can be accepted by us. All rights reserved. If you would like to subscribe to future editions of the Abacus Newsletter then please e-mail your name and address and we will add you to our mailing list. |
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